With Easter approaching, we’ve got eggs on the brain – but not necessarily the kind you might be thinking of. No, today we’re thinking about ‘nest eggs,’ and how you can start contributing to yours.
Whatever stage of life you currently find yourself in – whether you’re just starting out or mid-career – it’s crucial to always stash away a little something toward your nest egg. Here are four suggestions for how to get started:
- Start Early – The general rule of thumb says that you should begin saving 15% of your income during your 20s in order to have a significant amount stashed away for retirement and large expenses in the future. When it comes to savings, don’t delay – starting as soon as possible can help your nest egg grow exponentially over time.
- Take a Careful Look at Your Benefits – Employee-based retirement savings programs can be a great asset in building your nest egg. At any job, be sure to take advantage of what your employer offers. With a traditional 401k, for example, you determine what percentage to contribute out of each paycheck. These can be especially beneficial if your employer matches your contributions.
- Consider a Roth IRA – If you’re young and single, but your employer doesn’t offer a retirement option, a Roth IRA could be a great option for you. You need just $5,000 to get started and the biggest advantage of this type of retirement option is that your income won’t be taxed when you take it out during retirement.
- Pay Off Debt – When you’re in debt, always work to pay it off as soon as possible (while still contributing to savings and retirement whenever possible). Whether from high credit card spending or loans, once you pay off your debt, you’ll be free to increase your contributions to your savings and grow that nest egg even more.